Shandong Haihua Co., Ltd (hereinafter referred to as the company), mainly producing and marketing urea, ammonium acid carbonate, ammonia, liquidized ammonia, melamine and dimethyl ether. Registered with a total capital of RMB 188,834,000, 98.61% was held by the company. By the end of 2006, the total assets of the company were RMB 449,460,700, of which net assets were RMB 213,148,300. The whole year realized sales revenue RMB 364,667,400 and net profit RMB 1,756,900 (audited). Up to May 2007, the total assets of the company were RMB 417,320,200, of which RMB 203,449,300 was net assets. During the period, the company realized accumulative sales revenue RMB 169,961,900 and net profit a minus of RMB 10,367,700 (unaudited).